Starr’s New International Chief Sees Strong Growth Potential in Emerging Markets

As it sets out to grow its business in international markets, Starr Cos. is looking for countries with a vibrant population and an emerging middle class, according to Ed Navarro, the company's new head of international insurance operations.

For Starr Cos., that means Latin America and Asia are two very promising targets. They're similar in that they each have booming economies, an emerging middle class and a relatively young population, Navarro told Best's News Service.

As people gain wealth and grow into the middle class, they need things they didn't need in the past -- and that leads to insurance opportunities for companies like Starr.

"From our perspective, the international arena is where we see our growth," he said. "If you look at the economies in the emerging markets, double-digit growth is where they're at today and we expect to continue to see that in the future."

Starr is targeting small and medium business entrepreneurs in those countries with commercial, personal accident and health, general aviation, marine, property and infrastructure coverage, he said.

Although Latin America is a long way from Asia, you can draw parallels between the two, Navarro said. If you look at Brazil and Indonesia, both have economies that are flourishing, which is bringing a young, vibrant population into the middle class.

"They have all the right stuff socially and economically for our kind of business models," he said. "It makes sense for us because we know how to grow our business in emerging economies."

Starr has 14 offices across the globe and intends to grow substantially larger in the next three to five years.

Earlier this month, Starr announced it had formed a new global casualty insurance practice to provide underwriting to its general casualty insurance offerings (Best's News Service, Dec. 5, 2011).

The group appointed Navarro as head of international insurance operations in December (Best's News Service, Dec. 14, 2011).

The company wasted no time, acquiring travel assistant and insurer Assist-Card International Holdings SA in December, a company with a presence in more than 107 countries worldwide (Best's News Service, Dec. 19, 2011).

Assist-Card's footprint and their business of travel assistance with insurance wrapped around it made the company a nice fit for Starr, Navarro said. The group is looking to make more acquisitions that add value to the Starr franchise. "There will be more going forward," he said.

Starr Cos., which is comprised of Starr Indemnity and Starr Surplus Lines, is led by Maurice "Hank" Greenberg and recently underwent new brand positioning. It launched a new logo in March to present a unified corporate image to all of its brands on the marketplace (Best's News Service, March 2, 2011).

Starr Indemnity & Liability Co. and Starr Surplus Lines Insurance Co. have a current Best's Financial Strength Rating of A (Excellent).

(By Marie Suszynski)